Visa is extending its stablecoin card business further into the financing process. The company stated that it will provide additional settlement data to on-chain lending institutions to help them assess the performance of digital asset fintech companies and card issuers, thereby shortening financing approval times.
The number of stablecoin cards is increasing rapidly.
Visa told CNBC that there are currently over 160 stablecoin-linked card programs on its network, serving card issuers and project operators. This represents nearly a 200% increase compared to the same period last year, reflecting a growing number of crypto companies launching payment products for users.
Cuy Sheffield, Head of Crypto at Visa, said that new issuers continue to join, including stablecoin-focused banks and fintech companies, with new card programs launching almost weekly. As the business expands rapidly, demand for working capital and credit lines from these institutions is rising accordingly.
Settlement data integrated with on-chain lending
Visa’s new arrangement combines its own settlement data with on-chain lending infrastructure, enabling lenders to gain clearer visibility into businesses’ transaction and settlement performance, thereby accelerating their ability to assess creditworthiness.
Sheffield revealed that Visa has partnered with Credit Coop in a pilot program to provide credit support to stablecoin-linked card providers. The financing is facilitated through smart contracts and on-chain credit instruments. Credit Coop stated that its platform has processed a total transaction volume of $2.7 billion to date, with no borrower defaults.
Stablecoin regulation is driving institutional participation.
Visa cites data showing that over the past six years, on-chain lending protocols have facilitated nearly $700 billion in stablecoin-denominated loans. However, such activity has previously been largely confined within the crypto market. Visa believes that incorporating payment settlement data into the assessment would enable on-chain lending to better serve the real-world business needs of enterprises.
The company also noted that the GENIUS Act passed in the U.S. last year established a regulatory framework for stablecoins, driving increased adoption. Sheffield said that an increasing number of banks and major payment companies are seeking to partner with Visa to integrate stablecoins into existing products or co-develop new ones.
In July of this year, Visa launched a stablecoin platform encompassing use cases such as settlement, expansion of stablecoin-linked cards, and enabling financial institutions to access digital assets. As Visa accelerates its initiatives, companies including Mastercard, PayPal, and Circle are also advancing their own stablecoin platforms and payment networks.